Pay Yourself Twice
April 5, 2012 1 Comment
The details of this idea can be read here:http://7million7years.com/2011/05/26/the-pay-yourself-twice-wealth-strategy/
The general idea is that if we want to be seriously wealthy we need to do more than just save a small part of our incomes to be invested for the long term in various savings instruments so that we can achieve various life goals .Such a strategy will help us secure a middle class lifestyle but no more.So paying ourselves once secures us some insurance against the vagaries of life.To raise the capital to build businesses and participate in other higher risk ventures and to buy other truly passive assets we need to pay ourselves once again.
BTW the savings rate suggested so that we pay ourselves twice is over 75%. To check your savings rate why not use the calculator here:https://wealthymatters.com/2011/01/17/am-i-wealthy-calculator/ ?